Tesla Inc (NASDAQ:TSLA) was down 1.2% in Tuesday’s early deals as the European Union upped the pressure the electric vehicle (EV) firm.
An EU investigation reportedly found that Tesla unfairly benefitted from Chinese subsidies, according to a Bloomberg report.
It comes amid the EU’s continuing scrutiny towards the Chinese EV sector and the investigation was related to comments by European Commission president Ursula von der Leyen earlier this month.
Von der Leyen previously said global markets are "flooded with cheaper Chinese electric cars and their price is kept artificially low by huge state subsidies".
She at the same time alluded to how China's solar industry had ravaged European rivals through "unfair trade practices" and said the subsidy support for Chinese EVs is "distorting the market".
Those comments came as the EU launched an "anti-subsidy” investigation into the Chinese EV sector.
In New York, Tesla stock was down $3.01 or 1.22% changing hands at $243.98.